Tavistock Investments PLC Strategic Alliance and Proposed Fundraise (2564H)
14 November 2018 - 6:00PM
UK Regulatory
TIDMTAVI
RNS Number : 2564H
Tavistock Investments PLC
14 November 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014
("MAR"). IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE
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THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.
Tavistock Investments Plc
("Tavistock" or the "Company")
Strategic Alliance with Lighthouse Group plc
Proposed Raising of up to GBP1.25 million of additional equity
capital
14 November 2018
Tavistock Investments plc (AIM:TAVI) is pleased to announce that
it has entered into a strategic agreement with Lighthouse Group plc
("Lighthouse") (AIM: LGT) to establish an investment management
service.
This business will develop and distribute investment products
and services under the Luceo brand (Lighthouse's proprietary range
of investment solutions) to clients of Lighthouse through that
group's adviser base. These will include Tavistock's recently
launched capital protection products and may be extended to include
other investment solutions available through Tavistock, including
its model portfolio service. It is estimated that Lighthouse Group
currently has some GBP5 billion of assets under advice and places
about GBP1 billion of new investment and pension fund investments
on behalf of clients each year.
Malcolm Streatfield, Lighthouse's Chief Executive, said:
"Lighthouse is a successful financial advisory business with
particular expertise in providing advice to members of its affinity
group partners, whose aggregate membership is in excess of 6
million individuals. The Group signalled its intention to provide
effective, risk-managed investment solutions to its customers by
launching the Luceo Asset Management Range in October 2016 and is
continually looking to extend its range of investment solutions,
for the benefit of the Group, its customers and shareholders.
"Tavistock has demonstrated its ability to establish an
investment management business of scale since its inception in 2014
and I am delighted that we will be working together to develop
additional high-quality investment solutions for the benefit of our
mutual client bases. I believe that this will be the start of a
successful working relationship between Lighthouse and
Tavistock."
Brian Raven, Tavistock's Chief Executive, said:
"The establishment of a strategic relationship between
Lighthouse and Tavistock is a significant development for both
groups. Lighthouse is one of the leading financial advisory
businesses in the UK with some 400 advisers. It is the preferred
supplier of financial advice to 21 affinity group partners and
their aggregate membership of more than 6 million individuals. Its
selection of Tavistock as its partner to further develop its Luceo
range of investment solutions is a strong endorsement of our
expertise in this field. We look forward to achieving considerable
success together in the coming years."
Fundraising
The Company also announces its intention to raise up to GBP1.25
million of additional working capital, before costs, through the
issue of up to 38,109,756 new ordinary shares of 1p each at a
subscription price of 3.28 pence per share.
Use of funds:
The fundraising, if successful, will enable the Company to
replace an existing, and relatively expensive, GBP2 million debt
facility with a new GBP2 million five-year facility from NatWest
Bank at a lower rate of interest. It is estimated that the Company
could save some GBP100,000 per annum in interest as a consequence
of the change. The fundraising will also strengthen the Company's
regulatory capital position as the business continues to grow.
ENQUIRIES
Tavistock Investment Plc
Oliver Cooke / Brian Raven
+44 (0)1753 867000
Arden Partners Plc - Nominated Adviser
Paul Shackleton
+44 (0)20 7614 5900
Allenby Capital Limited - Broker
Nick Naylor / Nick Athanas
+44 (0)20 3328 5656
Vested - PR Partner
Elspeth Rothwell
+44 (0)20 3890 8118
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END
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